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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Maximus (MMS - Free Report) . MMS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.69. This compares to its industry's average Forward P/E of 22.59. MMS's Forward P/E has been as high as 19.09 and as low as 13.66, with a median of 15.18, all within the past year.
Another notable valuation metric for MMS is its P/B ratio of 2.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MMS's current P/B looks attractive when compared to its industry's average P/B of 8.57. Within the past 52 weeks, MMS's P/B has been as high as 3.27 and as low as 2.66, with a median of 2.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MMS has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.37.
Finally, our model also underscores that MMS has a P/CF ratio of 14.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.96. Over the past year, MMS's P/CF has been as high as 17.05 and as low as 13.13, with a median of 15.42.
These are only a few of the key metrics included in Maximus's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MMS looks like an impressive value stock at the moment.
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Should Value Investors Buy Maximus (MMS) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Maximus (MMS - Free Report) . MMS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.69. This compares to its industry's average Forward P/E of 22.59. MMS's Forward P/E has been as high as 19.09 and as low as 13.66, with a median of 15.18, all within the past year.
Another notable valuation metric for MMS is its P/B ratio of 2.93. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MMS's current P/B looks attractive when compared to its industry's average P/B of 8.57. Within the past 52 weeks, MMS's P/B has been as high as 3.27 and as low as 2.66, with a median of 2.97.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MMS has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.37.
Finally, our model also underscores that MMS has a P/CF ratio of 14.14. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.96. Over the past year, MMS's P/CF has been as high as 17.05 and as low as 13.13, with a median of 15.42.
These are only a few of the key metrics included in Maximus's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MMS looks like an impressive value stock at the moment.